CVB Financial Corp. (CVBF) serves as the parent organization for Citizens Business Bank, a state-chartered financial institution that delivers a broad spectrum ...
CVB Financial Corp. (NASDAQ: CVBF) is a bank holding company headquartered in Ontario, California, operating primarily through its subsidiary, Citizens Business Bank. Founded in 1974, the company has grown into one of the largest bank holding companies based in California, with over $20 billion in total assets. The bank serves ...CVB Financial Corp. (NASDAQ: CVBF) is a bank holding company headquartered in Ontario, California, operating primarily through its subsidiary, Citizens Business Bank. Founded in 1974, the company has grown into one of the largest bank holding companies based in California, with over $20 billion in total assets. The bank serves a diverse customer base including individuals, small to medium-sized businesses, and municipalities across key regions of California such as the Inland Empire, Los Angeles, Orange, San Diego, Ventura, Santa Barbara, and Central Valley counties.
Citizens Business Bank offers a comprehensive range of banking products and services. On the deposit side, it provides checking, savings, money market accounts, and certificates of deposit for both personal and business clients. It also serves as an authorized depository for federal tax payments. In its lending portfolio, the bank provides commercial financing options such as lines of credit, working capital solutions, accounts receivable financing, and letters of credit. Specialized agricultural loans support the needs of dairy farms, cattle feeders, and other agricultural operations. Additionally, the bank offers lease financing for municipal governments and loans for commercial real estate and construction. For consumers, it provides auto loans, home mortgages, home equity lines of credit, and credit cards.
Beyond traditional banking, CVBF offers treasury management systems, merchant card processing, armored pickup services, payroll solutions, remote check deposit, and electronic funds transfer capabilities including wires and ACH. Its CitizensTrust Division delivers trust and wealth management services, including fiduciary duties, mutual funds, annuities, 401(k) plans, and investment accounts.
As of the latest available data, CVBF has a market capitalization of approximately $3.25 billion and trades on the NASDAQ Global Select exchange. The company employs around 1,079 people. Its financial performance reflects a strong net profit margin of 29.3% and a return on equity of 8.2% on a trailing twelve-month basis. The company has a dividend yield of 3.5% and a dividend payout ratio of 39.7%, showing a commitment to returning value to shareholders. With a beta of 0.651, the stock is less volatile than the broader market. Key executives include CEO David A. Brager, who assumed the role in March 2020, and Chairman George A. Borba. The bank operates 58 banking centers and three trust offices across California, positioning itself as a key player in the regional banking sector.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$643.4M
-2.3%
+36.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$209.3M
+4.3%
-5.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+79.9%
+9.6%
+4.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+43.8%
+6.3%
-30.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+32.5%
+6.8%
-30.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$217.3M
-11.2%
+532.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+33.8%
-9.0%
+363.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
43.2%
+23.9%
-18.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.01x
-71.0%
+39.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good morning, ladies and gentlemen, and welcome to the second quarter of 2026 Earnings Conference Call for CVB Financial Corporation and its subsidiary, Citizens Business Bank. My name is Sherry, and I'm operator for today. Please note, this call is being recorded. I would now like to turn the presentation over to your host for today's call, Allen Nicholson, Executive Vice President and Chief Financial Officer. You may proceed.
E. Nicholson : Thank you, Sherry, and good morning, everyone. Thank you for joining us today to review our financial results for the second quarter of 2026. Joining me this morning is our Chief Executive Officer, Dave Brager, and our President, Clay Jones. Our comments today will refer to the financial information that was included in the earnings announcement released yesterday. To obtain a copy, please visit our website at www.cbbank.com and click on the Investors tab. The speakers on this call claim the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from our forward-looking statements, please see the company's annual report on Form 10-K for the year ended December 31, 2025. And in particular, the information set forth in Item 1A, risk factors therein. For a more complete version of the company's safe harbor disclosure, please see the company's earnings release issued in connection with this call. I'll now turn the call over to Dave Brager. Dave?
David Brager : Thank you, Allen. Good morning, everyone. For the second quarter of 2026, we reported net earnings of $48.3 million or $0.29 per share representing our 197th consecutive quarter of profitability, which is every quarter for over 49 years. We previously declared a $0.20 per share dividend for the second quarter of 2026 representing our 147th consecutive quarter of paying a cash dividend to our shareholders. Our net earnings of $48.3 million or $0.29 per share compared with $51 million for the first quarter of 2026 or $0.38 per share and $50.6 million or $0.37 per share for the prior year quarter. Pretax income in the second quarter of 2026 was $65 million compared to $68.6 million in the first quarter of 2026. Results for the second quarter of 2026 reflect the impact of the acquisition of Heritage Bank of Commerce, which closed on April 17. The core banking systems of the 2 banks were integrated at the end of the second quarter. During the second quarter, we incurred $31.4 million in acquisition expenses, which was $30.3 million better than the first quarter. In addition, we incurred a provision for unfunded commitments of $4.25 million for the acquired heritage unfunded loan commitments. Excluding these unusual items, pretax income would have been $100.7 million in the second quarter. I'll now turn the call over to Allen to further discuss additional aspects of the merger and …
